The price of oil fell by about 4.5% after the news that Israel would not strike Iran's nuclear or oil facilities, but would focus on military facilities.
Updated forecasts from the International Energy Agency (IEA) also had an impact on prices. IEA lowered its forecast for global oil demand growth for 2024 to 860,000 barrels per day but slightly raised its forecast for 2025 to 1 million bpd. IEA cited weakening demand in China as a key driver of the slowdown. However, despite concerns over a Middle East conflict potentially disrupting oil supplies, the IEA said OPEC+ spare production capacity is at historic highs, offering market reassurance.
Yesterday, OPEC also reduced its forecast for 2024 global demand growth, but it projects a much stronger expansion of 1.93 million bpd, driven in part by a stronger contribution from China.